Following the sale of all locations of a $30 million themed restaurant chain, the buyer alleged misrepresentation and fraud on the part of the seller. MCA Financial Group was retained as an expert witness for the seller in an arbitration in which the buyer’s claims included allegations of fraud, specifically the misrepresentation of financial statements provided during the due diligence period.
To evaluate the claimant’s fraud claims, MCA’s litigation support began with a review of all pleadings, disclosures, communications, financial records, the asset purchase agreement, and the opposing experts’ reports. The next step was to conduct detailed analyses of the financial statements and underlying records, quantify potential financial impacts, and draft an expert rebuttal report. Finally, MCA prepared summaries and visual aids for arbitration, assisted with deposition and hearing preparation, and provided ongoing consultation to support the client’s strategy throughout the engagement.
Throughout the process, MCA’s expertise in forensic accounting played a critical role, including the ability to analyze complex financial records, identify discrepancies, and trace the origin and accuracy of reported figures. Equally vital were the team’s technical skills in reviewing transaction documents, reconstructing financial statements, and rebutting the baseless claims of the buyer.
The most significant challenge was the opposing expert’s report, which included extensive analyses but often lacked clear conclusions or a definitive bottom line. This made it difficult to directly address the opposing positions or present a concise counterargument. To overcome this, MCA carefully reviewed and deconstructed the opposing analyses, identified key findings and areas of disagreement, and distilled the information into a clear, organized, and concise expert rebuttal report.
MCA collaborated closely with counsel to ensure that our analyses and opinions were communicated effectively and aligned with the client’s arbitration strategy. The MCA team also worked directly with the seller to verify and confirm the accuracy of the underlying facts and financial information related to the sale, ensuring that our understanding of the transaction reflected the actual circumstances. These interactions were collaborative and constructive, with no significant points of friction, and were critical to producing a well-supported and defensible expert analysis.
By distilling complex analyses into a concise rebuttal and providing actionable summaries, visual aids, and defensible conclusions, MCA delivered significant value that went beyond simply responding to the opposing expert. The clarity and efficiency of the report surpassed the client’s initial goals, providing confidence and a strategic advantage in the arbitration process.
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